Study On The Impact Of CEO’s Overseas Experience On Corporate Tax Avoidance

Tax burden is a cost for enterprises,and out of consideration for the balance between cost and benefit,enterprises will choose to avoid tax reasonably.This makes tax avoidance a frequent occurrence.From the perspective of senior echelon theory,managerial traits can have a significant impact on corporate decisions.Overseas experience is a special experience that imprinted new cognitive patterns and thinking structures of executives,which in turn will have an impact on corporate decision making.Existing research has focused on the impact of executive experience on corporate tax avoidance,but little attention has been paid to the link between executive overseas experience and corporate tax avoidance.Therefore,this paper attempts to develop a theoretical model of the impact of overseas experience of executives on corporate tax avoidance,so as to reveal the impact of overseas experience of CEOs on corporate tax avoidance and the mechanism of its effect.Firstly,this paper compares the existing research status of overseas experience of executives and corporate tax avoidance and establishes the research idea of this paper;secondly,this paper adopts theoretical deduction and induction method based on higher echelon theory,branding theory and principal-agent theory to put forward relevant hypotheses;again,this paper will take the A-share listed companies from 2015-2021 as the sample to firstly verify CEO’s overseas experience on corporate tax avoidance,after that,we will divide overseas experience into work and study experience and then further explore the difference of the impact on corporate tax avoidance,and then use group regression to test the moderating role between overseas experience and corporate tax avoidance as external regulation and the nature of equity,and finally draw the conclusion of this paper.In this paper,we find that the overseas experience of CEOs can contribute to corporate tax avoidance.The impact of CEOs with different overseas experience on corporate tax avoidance may also vary,with overseas job search experience having a more significant impact on corporate tax avoidance.External regulation and political affiliation play a moderating role between both CEO’s overseas experience and corporate tax avoidance.Based on the above findings,this paper suggests that the government should improve the policy of overseas talent introduction and tax-related regulations,enterprises should strengthen internal control and overseas talent selection and recruitment mechanism,and they should do their own psychological construction and improve their sense of social responsibility.